Town Square

Temporary moratorium on payday loan shops

==B Menlo Park:== While contemplating what to do should a payday loan business express an interest in opening a shop in Menlo Park, the council voted for a temporary moratorium on allowing such businesses to open.

Don't usury laws give city law enforcement the means of preventing predatory lending? It sounds tough to get into banning a whole category of businesses. It could be similar to how the BBC lost its liquor license because of illegal activity but there is no ban on all restaurants and bars in the city.

Posted by Aquamarine
a resident of another community
on Sep 19, 2012 at 4:08 pm

WhoR and Central Menlo make good points (the latter tongue in cheek). The more expensive the housing for hard working, local lower income residents, the more they'll feel pressured to go to a loan shark.